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Construction Stores Management Overview

Stores management plays a pivotal role in ensuring smooth project construction by receiving goods, providing proper storage and preservation, meeting demands, and minimizing issues like obsolescence. The key functions of a store include receipt of materials, proper storage and classification, and issuing materials to users. A storekeeper's duties include identifying, receiving, inspecting, storing, handling, packing, and dispatching materials while maintaining stock records. Factors like location, layout, preservation methods, lighting, safety, and housekeeping are important for good stores management. The main processes are receipt, stocking, and issues of materials.
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100% found this document useful (1 vote)
1K views36 pages

Construction Stores Management Overview

Stores management plays a pivotal role in ensuring smooth project construction by receiving goods, providing proper storage and preservation, meeting demands, and minimizing issues like obsolescence. The key functions of a store include receipt of materials, proper storage and classification, and issuing materials to users. A storekeeper's duties include identifying, receiving, inspecting, storing, handling, packing, and dispatching materials while maintaining stock records. Factors like location, layout, preservation methods, lighting, safety, and housekeeping are important for good stores management. The main processes are receipt, stocking, and issues of materials.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Introduction to Stores
  • Stores Functions
  • Duties of a Store Keeper
  • Design Factors for Good Stores Management
  • Broad Functions of a Store
  • Receipt System
  • Stocking
  • Storage for Construction
  • Issues Management
  • Important Stores Process Control Documents
  • Standardisation and Codification
  • Value Analysis

STORES

MANAGEMENT
Construction Materials Management
ACM PA 17
Importance?
Stores is considered the least
important and least glamorous function
of an organisation.
Challenge to the stores manager
plays a pivotal role in ensuring smooth
project construction besides assisting
purchase activities by providing timely
information.
STORES FUNCTIONS
To receive goods raw materials, components, tools &
equipments and other items and account for them
(checks).
To provide adequate and proper storage/stacking and
preservation of the goods in store.
Proper Classification and Codification of materials as
required.
To meet the demands of the consuming departments.
To minimize obsolescence, surplus, scrap and empties
To highlight stock accumulation, discrepancies,
abnormal consumption and effect control measures.
To ensure good housekeeping.
Duties of a Store Keeper
Identification of all materials stored
Receipt of Incoming Materials
Inspection of all materials received
Storage and Preservation
Material Handling
Packing
Issue of Materials to Users
Dispatch of stores to other project sites
Maintenance of stock records
Stores Accounting
Stock Taking
Submission of Management Information
Reports
Design factors for good stores
management
Location ideally should be as near to the point of
consumption as possible so as to reduce handling
and to have timely despatch.
- Should have adequate visibility from key positions.

- Should have wide approach road

- Should permit easy unloading/loading even by large


vehicles.
Layout scientific layout should ensure easy
movement of materials. Ensure easy retrieval,
ergonomically.
Design factors for good stores
management contd.
Sufficient space (for men and material handling
equipment) shelves, racks, pallets.
Proper preservation rain, light, heat, cold
storage, air conditioning.
Lighting adequate lighting is essential even for
night operations
Safety - training safety consciousness, safety
appliances, Personal Protective Equipment (PPE)
- good house keeping
- keep stores equipment in good order, forklifts,
cranes, trolleys, conveyors.
- fire fighting equipment
- toilets
Broad Functions of a Store.

Receipt
Stocking
Issues
RECEIPT SYSTEM
Receipts into the organisation or store
come from many sources:
- From outside suppliers
- From rejected stores
- From surplus stores
- From scrap generated
- From empties
- From stock transfer from other project
sites
RECEIPT SYSTEMcontd.

The Receipt system of a store starts much before


the actual receipt of materials at the store. This
requires proper planning in advance.
The Purchase order indicating quantity and delivery
date is the starting point. Records should be
maintained in a chronological order to show
expected daily receipts. So that the handling and
storage can be planned in advance.
This helps in planning labour contracts for
uploading, stocking etc. and when to take delivery
demurrage.
RECEIPT SYSTEMcontd.

Suppliers send despatch note or advise note


to the stores in advance i.e. Date of
despatch, carrier details, description, value
etc.
Document of transport department LR/RR or
consignment note
Packaging slip detailing contents in the
package.
Insurance details
RECEIPT SYSTEMcontd.
Actual physical receipts (check against P.O. And/or
invoice for quantity and quality
(delivery challan
verification for quantity, shortages, damages, claims
preference.
take open delivery with transporters
- get shortage or excess or damage endorsed.
Provisional Goods Inward (PGI) physically
received, pending inspection note/report.
Final goods inward note (FGI)
INTERNAL RECEIPTS transfer note/ return to
stores, stock transfer (no sale), Debit/Credit note,
Internal DC (delivery challan) . Where to integrate
the quality inspection dept?
For classroom teaching and private
circulation only
STOCKING
Sorting and storing issues
when volumes are high, provide
separate areas for:-
1. Stores awaiting inspection.
2. Stores which are QC inspected,
passed and accepted for use.
3. Storage of rejected materials.

( FG not applicable to construction


activity directly)
Storage for Construction
Open Space Storage: here materials like
sand, aggregates, etc. are stored. These
materials are more or less stable and do not
deteriorate appreciably due to storage.
Closed Space storage: here costly materials
like cement, equipment parts, finishing items
etc. are stored as they have to be kept
under lock and key.
Storage for Construction contd.

Open-enclosed storage: here material is


stored in the open but enclosed with a
protective fence. Suitable for materials like
steel, timber, asphalt drums etc.
Recommended
good storage
practices of some
key construction
materials
ISSUES
For consumption by internal departments
as per order or indent.
To works on returnable basis.
To outside suppliers for processing or
conversion.
For stock transfer to other divisions or
project sites.
For classroom teaching and private
circulation only
Important Stores Process Control
Documents
Receipt Voucher
Ledger Sheet/page/folio
Issue Voucher
Tally Card/Bin Card
Gate Pass
Goods Inward Register/Goods Receipt Register
Voucher control register
Indent Register
Rejections Register
Specific Items Issue register (cement, steel etc.)
Gate Registers
Weighment Slips/Registers
Stock Verification Registers
Standardisation
A standard is defined as a model or general
agreement of a rule established by authority,
consensus, or custom created and used by
various levels of interest.
Aim of standardisation should be to have uniform
standards for similar items.
Standardisation leads to simplification or variety
reduction. Standardisation should be of the most
economical sizes, grades, shapes, colours, types
of parts and so on.
ISI mark (Bureau of Indian standards) over 7,000
standards
Benefits of standardisation
Standardisation enables the materials
manager to achieve overall economy,
ensures inter changeability of parts,
implies better availability, better price
and better delivery.
It means rationalizing purchase
efforts, less stock (due to less variety)
and hence less obsolete items.
Less inspection effort( e.g. - no
routine checking of ISI marked items)
helps reducing inventory items.
Codification and Standardisation
We deal with thousands and sometimes even
lakhs of different items in inventory.
The problem is of how to ensure unique
product identification?
- suppler gives it a different name, different
departments may give it different names,
trade names may be many.
Hence codification is necessary for easy
identification of materials.
- It should be simple to implement
- It should be capable of being understood by
all.
- It should be compact, concise, consistent and
flexible.
Codification and Standardisation
contd.
How Can it be Done?
- representing each item by a number (numerical
code)
- the digits may represent a group, sub group, type,
dimension etc.
- In big organisations these codes may vary from 8
to 13 digits ( Railways, Defence etc)
- Major groups raw materials, spare parts, sub
contracted items, hardware items, paints and
furnishing materials, electricals, HVAC, tools, oils
& lubricants, stationary etc.
- sub groups
How Can it be Done?
Codification can be as per nature of
items e.g. Ferrous, non ferrous
or as per end use
or as per source of purchasing
There can be other methods of
codification like:-
Alphabetical system single or double
combination i.e. Alpha numeric
colour code ( either exclusive or in
conjunction)
Advantages of codification
1. Unnecessary writing of lengthy description
is avoided
2. Helps in reduction in number of items,
becomes a starting point of simplification
and standardisation
3. Helps in avoiding duplication of items
4. Helps in easy recognition (proper
identification) of an item in stores
5. Illiterate employees who handle loading,
unloading stacking and issues by using a
code find it easy and it ensures that the
right type of material is issued to the users.
Construction Projects Capital
Equipment coding
Capital equipments are associated with specific
activity or work packages, same should be
incorporated in the coding of these materials.
E.g. 110013/VI, 110013/V2, 110013/M1 etc.
110013 would be the project activity associated
with this equipment.(based on WBS)
V1 & V2 would be vessels nos. 1 & 2
M1 motor no.1
V & M are the mnemonic codes
Construction Projects
Construction Machineries
These are used as a resource in the project
Codes are used for resource allocation and
procurement of spares
A simple code incorporating mnemonic code
for the machinery and a serial are used. If
more than one project then project code is also
incorporated.
E.g Proj Code. /BD1 (bulldozer no.1)
./comp3, .Weld m/c5 etc.
Construction Projects - consumables

Used through out the project period in various


activities
Used in more than one activity
Usually limited to a few hundred only
Codification limited to project life only
A simple 3 to 5 digit code is preferable for such
items
Not desirable to have large codes
incorporating group codes, quality code, size
code etc.
Popular Models
KODAK SYSTEM:
- Is a 10 digit numerical code logic based on sources of
supply (procurement consideration).
- Materials are divided into 100 basic classifications
- Each class is divided into 10 subclasses
- E.g. 20 - cutting tools, 200 drills, reamers etc.
BRISCH SYSTEM:
- Based on the name of a consulting engineer.
- Is a 7 digit system 3 phases, based on logical major
groupings.
- Assemblies, sub assemblies, components.

Codification should be carried out only after consultation


with all the people concerned
Codification - problem areas

1. Allocation of temporary codes for


new items.
2. Maintenance staff quote supplier
part number while ordering.
3. Many organisations have more than
50% non-stock items. Ideally, non
repetitive, non-stock items should be
only 10% of the total items ( traditional
materials management concept, now
changing with JIT techniques).
Value Analysis
Value analysis is the orderly and
creative method to increase value of an
item.
It examines what something does, not
what it is.
An item can be a product, system,
process, procedure, plan, service etc.
This concept is used along with the
Value Engineering concepts like FAST-
functional analysis system technique
with cost function matrix.
VE was introduced by Lawrence D
Miles in 1945 and applied at the GE
plant during world war II.
VE considers the performance of a
function to its cost.
Function / cost, or
Performance + Capability / cost
Uses how/why questioning technique
Typical VE creation cycle
Forming a multi-disciplinary group .
VE starts by splitting functionality into
primary functions and secondary
functions.
Detailed analysis of functions and
costs.
Brainstorming/creativity
Evaluation
Development
Recommendation
Implementation/follow-up

Common questions

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Stock verification plays a pivotal role in inventory management by ensuring accuracy between physical stock and recorded data. Regular verification helps identify discrepancies, such as shortages, overages, or damaged items, and prompts corrective actions . This process, coupled with accurate stock records and control documents like the Goods Inward Register and Issue Voucher, creates accountability and transparency within inventory processes . By maintaining precise inventory counts, construction projects can plan more effectively, minimize the risk of stockouts or overstocking, and optimize cash flow and warehouse space .

Value analysis and value engineering are key methodologies for cost control in construction materials management. They examine the necessary functions of an item rather than its traditional description, looking to enhance the function-to-cost ratio . This involves splitting functionality into primary and secondary functions and conducting detailed cost analyses with a multi-disciplinary team . These methodologies use creativity and evaluation to develop recommendations that can lead to cost reductions while maintaining or improving functional performance of materials . Implementing these recommendations helps manage and reduce materials costs effectively, optimizing resources and construction budgets .

Codification and standardization align effectively with JIT inventory principles by streamlining materials management to reduce waste and enhance efficiency. Codification simplifies material identification, allowing quick and accurate access, which is essential for JIT operations that rely on precise timing and minimal inventory levels . Standardization reduces the variety of materials, thus decreasing complexity and the holding of excess stock, which aligns with JIT goals of maintaining low inventory without sacrificing availability . By adopting standardized practices and codification systems, construction projects can better synchronize supply with demand, optimizing inventory turnover and minimizing storage costs .

The design of a store's location and layout significantly impacts materials management effectiveness. Ideally, a store should be located near the point of use to minimize handling and ensure timely dispatch of materials . A scientific layout that allows easy movement and retrieval of materials is crucial, along with sufficient space for personnel and equipment, ensuring that storage processes are ergonomically efficient . Proper layout reduces time spent and errors in materials handling, enhancing overall project efficiency .

Proper material handling and storage are crucial for ensuring safety and enhancing efficiency in construction projects. Efficient handling and orderly storage minimize accidents and injuries, reducing potential safety hazards associated with mismanaged materials . Moreover, adequate storage conditions, such as protection from environmental factors, ensure material longevity and optimal performance . Safety measures, including personal protective equipment and well-maintained materials handling equipment, are fundamental to preventing workplace incidents and improving operational efficiency . These practices align with good housekeeping principles, which further solidify project success and worker safety .

Challenges in codification include assigning temporary codes for new items and maintaining clarity across departments that may use different names for the same items . To address these challenges, codification systems should assign unique numerical codes that are understandable and consistent across the organization . It is also recommended to consult with relevant stakeholders to ensure that the codification meets practical needs and avoids confusion . Adopting a standardized system can reduce unnecessary complexity and improve the efficiency of materials management .

A storekeeper in construction materials management has crucial responsibilities that significantly contribute to project efficiency. Their duties include identification and receipt of materials, inspecting them upon arrival, ensuring proper storage and preservation, and maintaining accurate stock records . Additionally, they handle material issues to users, dispatch to other project sites, and account for stores through stock taking and submission of management information reports . These functions ensure minimal obsolescence, prevent accumulation discrepancies, and facilitate timely delivery of materials, which are critical for maintaining smooth construction operations .

Standardization offers multiple benefits in stores management for construction projects. It helps achieve overall economy by enabling interchangeability of parts, improving availability, pricing, and delivery of materials . Additionally, it reduces inspection efforts and inventory items, as fewer varieties lead to less obsolescence and duplication of items . Standardization also simplifies the codification process, facilitating easier recognition and management of materials across the organization .

Integrating quality inspection with inventory management is vital for ensuring material reliability and performance in construction projects. Quality checks upon receipt, prior to storage, ensure that only materials meeting requisite standards are utilized, preventing potential project disruptions and failures . By incorporating quality inspection into the inventory process, stores can maintain high standards and traceability, which is crucial for regulatory compliance and safety . This integration also aids in reducing costs associated with returns, replacements, and material reworks, ensuring efficient use of resources . Such practices contribute to overall project quality and efficiency, reinforcing the value of comprehensive inventory management systems .

A receipt system enhances storage and handling efficiency by structuring the flow and verification of materials received. It starts before materials physically arrive, involving planning with purchase orders and chronological records of expected deliveries . This preparation allows the store manager to plan necessary labor and storage adjustments in advance, reducing demurrage and handling costs . The system also includes vital documentation processes such as despatch notes and consignment verification, ensuring quality and quantity control upon receipt . These coordinated efforts streamline stock management and minimize holding errors, thus enhancing overall project efficiency .

STORES 
MANAGEMENT
Construction Materials Management 
ACM PA 17
Importance? 
u0001 ‘Stores’ is considered the least 
important and least glamorous function 
of an organisation.
u0001 Challenge to t
STORES FUNCTIONS
u0001 To receive goods – raw materials, components, tools & 
equipments and other items and account for them 
(c
Duties of a Store Keeper
u0001 Identification of all materials stored
u0001 Receipt of Incoming Materials
u0001 Inspection of all materia
Design factors for good stores 
management
u0001 Location – ideally should be as near to the point of 
consumption as possible so
Design factors for good stores 
management …contd.
u0001 Sufficient space (for men and material handling 
equipment) shelves, rac
Broad Functions of a Store.
u0001Receipt
u0001Stocking
u0001Issues
u0001Issues
RECEIPT SYSTEM
u0001 Receipts into the organisation or store 
come from many sources:
- From outside suppliers
- From rejected st
RECEIPT SYSTEM…contd. 
u0001 The Receipt system of a store starts much before 
the actual receipt of materials at the store. This

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